How can one stack silver with these crazy premiums?

[Rastatodd]

I'm at my desk this beautiful Sunday afternoon here in the Twin Cities trying to stack what little silver I can find, when I should be out walking the dogs instead. Well I am on of all things eBay trying to catch a falling star in the way of a bargain on some 90% US junk. Came across this auction for 1-Washington Quarter and 3-Roosevelt dimes, melt value of $9.52. Sold at the strike of the gavel for $12.71 including shipping. Now if my math is right, that lot sold at a premuim of $3.19 or 33% more than it was worth. Now we all know that eBay's prices are quite high, I know that. But with silver at a little over $24. Has the world gone mad! I thought with this pullback in silver as well as gold prices a could find a few bargains. But it looks like the people that where on the fence about precious metals have decided to jump into the ring with the rest of us. I would just like to know will prices ever fall back in line with reasonable premiums?

[dannan14]

*shrug* i consider silver to be worth far more than its current price in USD so it's still on sale no matter the premium.

[beauanderos]

I'm at my desk this beautiful Sunday afternoon here in the Twin Cities trying to stack what little silver I can find, when I should be out walking the dogs instead. Well I am on of all things eBay trying to catch a falling star in the way of a bargain on some 90% US junk. Came across this auction for 1-Washington Quarter and 3-Roosevelt dimes, melt value of $9.52. Sold at the strike of the gavel for $12.71 including shipping. Now if my math is right, that lot sold at a premuim of $3.19 or 33% more than it was worth. Now we all know that eBay's prices are quite high, I know that. But with silver at a little over $24. Has the world gone mad! I thought with this pullback in silver as well as gold prices a could find a few bargains. But it looks like the people that where on the fence about precious metals have decided to jump into the ring with the rest of us. I would just like to know will prices ever fall back in line with reasonable premiums?

NO.

your last sentence needs to be reversed. Will premiums ever fall back in line with reasonable prices?

YES.

Members of forums like ours recognize that the recent price pulldown was unjustified and not supported by any logical change in fundamentals. Therefore the current prices should hardly be considered as the true price of silver, or gold (although the public deem them so). If they were, those buyers could easily visit any source and find the coins sold at that price level. Just by the fact that they cannot do so proves that such prices are NOT reasonable, and hence, "exaggerated" premiums have been employed to compensate for the disparity.

[Rastatodd]

*shrug* i consider silver to be worth far more than its current price in USD so it's still on sale no matter the premium.

Good point. But will you ever make up for the excessive premiums? I guess we don't have a crystal ball to tell us that, only the future holds that answer. Perhaps I am to reserve in my procurement of metals as a whole. I look at my excel balance sheet, if I'm not cost averaging down on my purchases, why buy.

[beauanderos]

Wow, Todd... you're right! The madness infects the gold buyers too... just checked on the prices of soon to expire 1/10 oz gold coins... ALL of them are in the $180 or greater range

Just goes to show you what great prices we are able to achieve from fellow members, when sellers aren't gouged by excessive fee structures.

[beauanderos]

*shrug* i consider silver to be worth far more than its current price in USD so it's still on sale no matter the premium.

Good point. But will you ever make up for the excessive premiums? I guess we don't have a crystal ball to tell us that, only the future holds that answer. Perhaps I am to reserve in my procurement of metals as a whole. I look at my excel balance sheet, if I'm not cost averaging down on my purchases, why buy.

Why buy? You are operating under the assumed paradigm of continued silver sourcing ability at pricing that will sooner or later revert to more reasonable levels given that the buying frenzy will eventually exhaust itself.

Other possibilities.

1) The buying frenzy builds, rather than abates.
2) Physical silver depletion is REAL.
3) You will always have control of your money (will we? Cyprus?) to make rational decisions regarding the appropriateness of purchases if they are inconsistent with our goals.

I'm not playing guessing games with premiums. Yes, they are costly and make you gnash your teeth when you wish you could take advantage of the dip and buy more. But there's little that can be done about them. If you want to build your stack, consider swapping junk ounces for .999 bullion, there are some who say they've been doing so to their advantage.

[Rastatodd]

I know what a great buy/sell/trade system we have here on Realcent. How we can do business transactions amongst ourselves will so very little if any problems. When I am buying, the first site that I turn to is Realcent. When the drop in prices did come upon use I saw that 1/10 AGE were selling for $155 - $159. Just didn't have enough, a term I have hear on this site "dry powder" in the bank to hop on that buying opportunity. But I did purchase some 1 gram AU PAMP Futura Bars.

[SoFa]

$3.19 over melt doesn't seem excessive. If it's mailed with tracking, that's $1.69.

[rsk1963]

3.19 over for the amount being dscussed is crazy

[xippi]

Ebay bucks are expiring in 4 days. Use em or loose em.

[John Reich]

I'm not playing guessing games with premiums. Yes, they are costly and make you gnash your teeth when you wish you could take advantage of the dip and buy more. But there's little that can be done about them. If you want to build your stack, consider swapping junk ounces for .999 bullion, there are some who say they've been doing so to their advantage.[/quote]

Ray makes a great point. Watching the gold/silver ratio & the premiums on 90% vs .999 is a great way to build your stack. For me, playing with the ratios and trading different metals keeps me "in the game" and provides enjoyment from the hobby angle, while I grow my stack.

[angel2004]

I guess I try not to worry when silver goes down after I buy, I just am happy to have the PM. Also, the premiums are just higher percentages now, I think because of the abrupt downward spiral. Hopefully the dust will settle soon and premiums will go down again. I haven't purchased at these high premiums, but I think at least at my local shop the silver I could have purchased with a 5% over spot premium a month ago, could be purchased at a 15% premium now for about the same so go figure.

[Country]

I am strongly of the opinion that the premiums are too high. Now, if your stack is large you can afford to wait for a better opportunity; otherwise, you've got to get your share now despite the premium. Tulving's premium for 90% is coming DOWN; a week ago it was at spot + $4.99 for dimes and quarters; a few days ago it was spot + $4.49, and now bags are being sold for spot + $3.99. I would wait and buy in a few weeks at even lower premiums. Tulving gives me the notion that premiums will be gradually further reduced soon. I would note that BUY prices for 90% bags have held firm at spot + $1.99.

[Klark Cent]

Ebay bucks are expiring in 4 days. Use em or loose em.

I usually buy forever stamps when that happens. You can get them at or below face value last time I checked.

[Klark Cent]

Wow, Todd... you're right! The madness infects the gold buyers too... just checked on the prices of soon to expire 1/10 oz gold coins... ALL of them are in the $180 or greater range

Just goes to show you what great prices we are able to achieve from fellow members, when sellers aren't gouged by excessive fee structures.

Are the eBay fees affecting the premiums? It seems like most of the 90% lots have low starting bids and still finish at 24x or whatever.

In other words, the sellers don't seem compelled to set high starting bids or buy-it-nows to guard against low finishing bids.

Are the gold auctions like that?

[Coppercrazy]

have you checked your local pawn shops? I can buy at spot on junk silver any day hes got some one by me....i wouldnt bother with chain pawnshops,just the maw n paw type.

[Rastatodd]

3.19 over for the amount being dscussed is crazy

Sorry rsk1963. Just thought the 33% over melt was a bit much, that's all. Next time you'll have no need to reply to such a thread as this. As your reply would be construed as being crazy after letting us all know how you feel. Good night, Daddy Warbucks.

[wheeler_dealer]

Dollar cost average. Convenience. Location constraints. Sometimes when we buy often in small amounts the premium is a cost of sourcing. I am guilty of supporting these high premiums. I recently have been buying dimes at $2.00 each and quarters at $5.00. What I pay in premium I save in time, fuel, mileage, wear and tear. I M O the choice to purchase at a premium is fostered out of convenience. I also prefer to source from my friends here.

[Engineer]

It's simple. You put one piece on top of another.

[IdahoCopper]

I rationalize it like this. The last time I sold silver, I sold 85 oz Ag in Kennedys to buy a car. I traded the seller directly for the coins. The spot at that time was $33.98 per oz.

Now, anytime I can buy AG for less than $33.98, including premiums, postage, gas, etc. to replace those Kennedys with any kind of Ag, it is a good deal.

Its all in the mind, Grasshopper.

[angel2004]

That's a good way to look at it. You can't look back and worry. The price is going up now have any premiums decreased to anyone yet?

[Lemon Thrower]

premiums are starting to come down, and supply is starting to trickle in.

you have to have some patience, which is easier if you already have a stack.

[SoFa]

I agree. patience. A period of historical high premiums is not the time to back up the truck.

[CLINT-THE-GREAT]

I rationalize it like this. The last time I sold silver, I sold 85 oz Ag in Kennedys to buy a car. I traded the seller directly for the coins. The spot at that time was $33.98 per oz.

Now, anytime I can buy AG for less than $33.98, including premiums, postage, gas, etc. to replace those Kennedys with any kind of Ag, it is a good deal.

Its all in the mind, Grasshopper.

He's so right, when I started stacking Silver was at $34/oz. I bought my first Buffalo Round off of eBay for $37/shipped....now if I see Silver under $30 i'm ecstatic!!!!

-The Great

[Verbane]

Wow, Todd... you're right! The madness infects the gold buyers too... just checked on the prices of soon to expire 1/10 oz gold coins... ALL of them are in the $180 or greater range

Just goes to show you what great prices we are able to achieve from fellow members, when sellers aren't gouged by excessive fee structures.

Are the eBay fees affecting the premiums? It seems like most of the 90% lots have low starting bids and still finish at 24x or whatever.

In other words, the sellers don't seem compelled to set high starting bids or buy-it-nows to guard against low finishing bids.

Are the gold auctions like that?

NO. If I'm bidding on a lot, I could care less what the seller will incur in fees. Competition for physical is driving Ebay prices.